) announced the expansion of its Digital Life package in six new
markets - Beaumont, Omaha, Toledo, Greenville, Cape Coral, and
Oxnard. With the latest launches, AT&T's Digital Life is now
available in 81 markets. We believe the expansion of the Digital
Life package will eventually remain accretive to revenues while
also adding to bottom-line growth.
In 2013, AT&T entered the home security and automation
service market with the launch of its Digital Life package. Since
then, it has already gained significant market traction in this
The company previously stated that the market for home security
services is significantly unaddressed as only 1% of U.S. households
have an automated security system. As a result, the company sees
ample financial opportunity in the $18 billion market for automated
home security systems. AT&T has so far seen greater success in
this market compared to its peers thanks to its own technology in
home security digital products and adequate marketing and
Apart from the expansion of new products and services, the
company already enjoys strong momentum in both its Wireline and
Wireless businesses. While continued strength in smartphones is
fueling growth in the wireless business, wireline is benefiting
from growth in its U-verse and strategic services. AT&T is the
leader in WiFi (wireless broadband) connectivity with over 30,000
domestic and 190,000 international hotspots.
Other positive attributes for the company include a strategic
realignment initiative and a healthy financial profile. However,
persistent access line losses, competitive pressure from the likes
), and regulatory issues will likely weigh on the stock in the
AT&T retains a Zacks Rank #3 (Hold).
A better-ranked stock worth considering in this sector is
Level 3 Communications, Inc.
) with a Zacks Rank #1 (Strong Buy).
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